Pawel Huryn
75 lines
4.1 KiB
Markdown
75 lines
4.1 KiB
Markdown
---
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name: north-star-metric
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description: "Define a North Star Metric and 3-5 supporting input metrics that form a metrics constellation. Classify the business game (Attention, Transaction, Productivity) and validate against 7 criteria for an effective North Star. Use when choosing a North Star Metric, setting up a metrics framework, learning about the North Star Framework, or deciding what to measure."
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---
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# North Star Metric
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Identify a North Star Metric and 3-5 Input Metrics that form a metrics constellation. Classifies the business game being played and validates against criteria for an effective North Star. Use when defining key metrics, setting up a metrics framework, or choosing what to measure.
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## Domain Context
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NSM is **NOT**: multiple metrics, a revenue/LTV metric (must be customer-centric), an OKR (that's a goal-setting technique), or a strategy (but choosing the right NSM is a strategic choice).
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NSM **IS**: a single, customer-centric KPI that reflects the value customers get from the product and serves as a leading indicator of long-term business success. You can use Key Results (OKRs) to express expected change in NSM.
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Free resource: [The North Star Framework 101 (PDF)](https://learn.productcompass.pm/nsm101)
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## When to Use
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- Defining your company's key metric framework
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- Setting up a metrics tracking system
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- Choosing what to measure and optimize for
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- Evaluating potential North Star candidates
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- Triggers: North Star metric, north star, key metric, what to measure, metrics framework, OMTM
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## The Three Business Games
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Before identifying your North Star, classify your business into one of these three games:
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- **Attention Game**: How much time do customers spend using your product? (Examples: Facebook, Spotify, YouTube, TikTok)
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- **Transaction Game**: How many transactions occur between customers and your platform? (Examples: Amazon, Uber, Airbnb, PayPal)
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- **Productivity Game**: How efficiently can someone complete their work or achieve their goals? (Examples: Canva, Dropbox, Loom, Notion)
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## Prompt
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You are a metrics strategist specializing in North Star metrics and growth measurement frameworks.
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Given the following business context: $ARGUMENTS
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**Step 1: Classify the Business Game**
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Determine which game this company plays: Attention, Transaction, or Productivity.
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**Step 2: Identify the North Star Metric**
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Suggest a single metric that meets all seven criteria for an effective North Star:
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1. **Easy to Understand**: Clear definition that everyone in the organization comprehends
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2. **Customer-Centric**: Reflects value delivered to customers, not just revenue or activity
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3. **Sustainable Value**: Indicates habits and long-term customer engagement
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4. **Vision Alignment**: Represents meaningful progress toward the company's vision and mission
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5. **Quantitative**: Measurable with clear, numeric tracking
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6. **Actionable**: Teams can directly influence it through product, marketing, and operational changes
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7. **Leading Indicator**: Predicts future business success and revenue growth
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**Step 3: Identify Input Metrics**
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Define 3-5 Input Metrics (also called leading indicators) that most directly influence and drive the North Star Metric. Each input metric should:
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- Be easier to move in the short term
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- Directly contribute to the North Star outcome
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- Help identify where optimization efforts should focus
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## Tips for Best Results
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- Provide details about your business model and revenue model
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- Share your company's vision, mission, or long-term goals
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- Include current metrics you're tracking
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- Mention key customer segments and use cases
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- Describe the primary value you deliver to customers
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---
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### Further Reading
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- [The North Star Framework 101](https://www.productcompass.pm/p/the-north-star-framework-101)
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- [AARRR (Pirate) Metrics: The 5-Stage Framework for Growth](https://www.productcompass.pm/p/aarrr-pirate-metrics)
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- [The Google HEART Framework: Your Guide to Measuring User-Centric Success](https://www.productcompass.pm/p/the-google-heart-framework)
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- [The Ultimate List of Product Metrics](https://www.productcompass.pm/p/the-ultimate-list-of-product-metrics)
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